In this ‘Fast Take’ we cover video programming services delivered directly to the consumer via the internet – without a traditional bundled video subscription (like cable TV). We also explore how new content creators have amassed large audiences, built valuable programming brands and why traditional media companies such as Disney and Time Warner are flocking to the space.
Key Takeaways:
1) More Devices Mean Ubiquitous Access: When more consumers adopt broadband, smart phones, and tablets, access to content becomes universal. It’s not a question of if consumers will stream via OTT, it’s a question of how much they will stream.
2) Programming Is Programming: People choose content based on their interests; a show’s origin has become irrelevant. Did it start on TV or the web? It doesn’t seem to matter, as consumers are willing to subscribe (and sometimes pay) for programming they care about.
3) YouTube Is A Bellwether: The stable platform, global reach, and friendly ecosystem have made it the best place for creators to launch new programming ventures. Perhaps only a small piece of the OTT future, it offers a template for understanding the multi-million channel universe.
4) MCNs Will Gain More Significance: As investment flows to this sector, MCNs will be integrated into the operations of major media conglomerates. They will offer advertisers more custom content, sponsorship, and distribution opportunities. Their audience management tools will become increasing important.
5) Marketers Are Still Early: As the OTT landscape progresses, a few star channels will emerge. Brands could be marketing partners and/or channels themselves.
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